A new Government bioenergy initiative has been announced today aimed at stimulating the production of energy crops.
Between 2007 and 2009 €8m is being allocated for the grant scheme to encourage the planting of willow and miscanthus for the production of biomass suitable for use as a renewable source of heat and energy.
Mary Coughlan, Minister for Agriculture and Food, said the new Bioenergy Scheme will supply grants to farmers for up to 50 per cent of the costs associated with establishing miscanthus and willow on set-aside land and on areas which have been aided by the EU Premium of €45 per hectare.
The scheme will be piloted in the coming year and initially 1,400 hectares of willow and miscanthus will be grant aided. Ms Coughlan said farmers could receive up to €1,450 per hectare towards establishment costs.
"The scheme will provide opportunities for farm diversification and encourage farmers to consider willow and miscanthus as an alternative land use option," she added.
Full details of the scheme are now available from the Department of Agriculture and Food and the closing date for applications is February 28, 2007. The Department is also introducing an additional top-up payment of €80 per hectare in 2007 to support the growing of energy crops.
This is a top-up to the existing EU Energy Crops premium of €45 per hectare, bringing the overall payment to €125 per hectare.
"It is intended that the €80 additional payment will apply for three years and will be subject to a maximum ceiling per producer over the three years," Ms Coughlan said.
The current maximum area payable per producer over the three-year period is 37.5 hectares. Ms Coughlan said she is pursuing EU approval to allow an increase in this ceiling.
Willow and miscanthus are also eligible for this payment, subject to an application under the EU Energy Crops Scheme. Ms Coughlan confirmed that she has received confirmation from the European Commission that land used for growing willow and miscanthus is eligible to benefit from the Single Farm Payment.
Ms Coughlan said she was confident these measures would incentivise farmers to grow energy crops and encourage the development of an energy crop growing sector in Ireland.
Cllr Mary White, Green Party Deputy Leader and Biofuels spokesperson, called the scheme "too little, too late." "While I welcome any advance in the development of the energy crop sector, there are problems with the initiative
"Firstly, the total area under grant assistance is 1400 hectares, which amounts to just 70 individual applications, if each applicant takes up their full allocation.
"Secondly, the timeframe in which to apply is far too short; it is particularly hard for farmers to try and get organised within the window of three weeks."